	Mr. Jack Tong (Taiwanese IT entrepreneur)

	Back from early 1960 to 1980, Taiwan's IT Market was mainly dominated By US vendors like IBM, HP, DEC, Wang and Unisys. etc, Their main business were to provide Mainframe Hardware, software and service to only a few specific Industry sectors including Public sector- Government, Government enterprise, healthcare, and telecom; Finance sector- Banks and Insurance Companies, Securities, financial institutes and futures. etc, Commercial sector- large scale enterprise and general Business.

	As such, Taiwan had achieved high economic growth and high level of computerization across all major industry sectors and, China however, was about two to three decades behind when it was replicated in early 1990. The total computerization level was still moving slowly due to business environment and infrastructure was not fully developed and, the huge geographical coverage needed more time and resource, finance, facilities (export control by US was in place for certain high technology based computer equipment, and skilled people) for full deployment is another factor.

	In late 1970, Acer, a Taiwan local PC vendor introduced own Brand PC, followed by Mitac, Leo, Twinhead to form manufacturing chain with many local peripheral outsourcing manufacturing partners. those were Taiwan's IT industry pioneers who started up Taiwan's IT industry and forged into strong PC business Chain, from Branding, manufacturing ,assembly, component OEM, retail channel , to distribution and logistic Service, providing end to end value chain service and infrastructure within two decades.

	The transformation from manufacturing to information industry was successfully achieved In Taiwan since early 1990 which had also laid strong foundation to boost another star business -IC industry when most Tier 1 vendors like IBM, HP, Compaq, and Microsoft entered into PC market and started IPO operation in early 1980. The explosive growth of worldwide PC Business had further helped Taiwan becoming one of the heavy weighted Global PC OEM countries from 1990 to 2000. This is vital important and essential to the continued growth of Taiwan's economic. The industry expertises, Value Chain, global networking, capital strength, Business know how and abundant & skillful human resource has been an invaluable Asset of Taiwan. Which has been rock solid for Taiwan to further Evolve to Knowledge centered economic age after year 2K.

	On the other hand, in early 1990, The US IT vendors like IBM, HP, Sun, Cisco, Microsoft, Sun had noticed the huge potential of emerging market in China and had invested strategically in order to capture tremendous business opportunity. Their initial strategy was to replicate Taiwan success model to China. The fluid triangle among three nations as far as IT industry development and partnership were concerned had become very dynamic and complicated, internet bubbling and booming again, new WTO game rule had further contributed significantly to it from late 1990 to early 2000. Business heat wave of "Go West" with "Taiwan experience" and "Investment to China" can not stop but has been playing a significant part of the acceleration of the development of whole IT industry and manufacturing Business in China.

	When Post PC comes, Most US vendors had further set up their international procurement office (IPO) in China or relocated IPO from Taiwan to China or reorganized the IPO to upgrade China as the HQ of Greater China Geography ( GCG including Taiwan, Hong Kong and China) and, later on, Taiwan OEM manufacturing plants were forced to relocate to China, as part of cost down requirement and chain reaction caused by Global PC throat-cutting price competition among PC vendors, the other consideration was to capture huge PC opportunity in China in view of Local PC leader "legend" has been gaining share up to nearly 30% market share in China as of 2003. Time to Market is the consideration.

	Followed on the heels of OEM companies, Most Taiwan's listed IT vendors including Distribution, system integrator, Software, etc had also set up China's Branch office in the district of north, east and south in China which carry 90% economic activities in China, to serve their Taiwan based customers.

	From late 1990 to Year 2002, Taiwan Faced the rapid change of shifting the whole OEM business Chain to China together with a series of negative external issues like Asia Financial Crisis, Sept 21 earthquake, Sept. 11 suicide attack, SARS, US attack Iraq has resulted in severe impact of Taiwan's economic, especially Finance and manufacturing industry" which share more than 60% of total IT expenditure of Taiwan. It's also the black period of IT industry as most IT budget were both postponed and frozen, Merge & acquisition happened among IT companies and some US vendors had either righted sizing or close business as interim solution until Taiwan's economic recovered in year 2003. whereas China was not impacted, even with SARS, still did not stop China's high GDP growth due to huge Capital injection from Taiwan, US, H.K. and Singapore and Europe. China is gradually developed as Global Manufacturing hub. It become a common Pro and con to every country in the world, especially Taiwan and US who need a new perspective on partnership and solution to fit in with new partnership among three nations.

	To overcome the Challenge, Taiwan Government had launched "Two Trillions, Two Stars" Industry policy with vision to help the Nation migrate to a High technology intensive, high capital intensive, high knowledge economic based business hub for Asia and global till 2008. The progress as of now proves it is on the right track, as most vendors' notices that Taiwan's strategic direction will help maintain dynamic balance by leveraging one's strength among three countries. One of the key evidence is that most US IT vendors have set up R&D, or design centers in Taiwan.

	Forward looking, Taiwan will continue the economic development to inline with this strategic direction, business synergy and collaboration among three nations will be getting better and clear if this win win cooperation model is perceived and supported by the three nations.

	China will soon tale role as World wide biggest manufacturing country and the 2nd biggest market next to US in the near future. According to Taiwan's economic development experience in the past 4 decades, China may need same of more time to become a full developed country given China has so much resource and huge market to support the growth and, Taiwan experience, resource and partnership with China and US is one of the very few important factors that China can succeed, at least from a tactical point of view.

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